Insurance Collections Bureau Debt: Check a Letter and Your Options

Have you received a surprising letter about ICB debt (Insurance Collections Bureau)? You might have lots of questions. You may wonder where this debt came from and whether you must pay it. You might even be wondering if the company is real or worried about being unable to pay. If so, you’re not alone.

This guide explains how to verify the account and choose an appropriate response.

• The background of ICB Debt Collection (Insurance Collections Bureau).
• Why they might be reaching out to you.
• If it’s possible to write off some of your ICB debt.
• Steps to take when dealing with ICB Debt Collectors.
• What to do if you can’t afford to pay ICB.

You can ask for information and seek free independent debt advice if the demand worries you.

Here’s how to deal with ICB debt.

Why are they Getting in Touch?

It’s never nice getting a letter from a company you probably don’t recognise, demanding that you pay a set amount of money. It’s unlikely you would have had dealings with them in the past. So you are probably wondering ‘why is ICB debt collectors contacting me?’

Insurance Collections Bureau describes collecting for insurance businesses. Check the creditor, policy and account named on your letter.

A website testimonial does not establish who owns your particular account or whether its balance is correct.

Ask the insurer, broker or finance provider to confirm the instruction if uncertain.

Changing or cancelling insurance does not automatically create a collection debt. Check premiums due, cancellation terms and fees, any claim-related balance and any separate premium-finance agreement.

Dealing with ICB Debt Collectors – Next Steps

It can be stressful and upsetting to get a letter from ICB debt collectors, especially when you’re least expecting it. Follow these steps to handle ICB debt collectors to help make the process less stressful.

A letter can contain an error or concern someone else. Do not assume liability merely because collection mistakes are described as uncommon.

Ask for the creditor’s name, account reference, balance breakdown and evidence that you are liable. For regulated consumer credit debts, a firm must pause recovery while it investigates a dispute on valid or potentially valid grounds. A request for information does not itself cancel the debt or extend a court deadline.

Use your policy documents and account records to identify any specific dispute.

» TAKE ACTION NOW: Fill out the short debt form

Gather the necessary details

When you get the letter from ICB debt collectors, they will specify exactly who they are collecting the debt for. If the name of the company is familiar to you, you should go through any and all correspondence you have had with this company.

A difference between balances does not automatically cancel liability. Request an itemised explanation and challenge fees or payments that appear incorrect.

Do not give payment details or sensitive information to an unexpected caller. Hang up and contact the organisation through details you find independently on its official website. Once you have verified it, reasonable identity checks protect your privacy: a genuine collector should check that it is speaking to the right person before disclosing account details.

Take advice before paying or admitting an old disputed balance, because a qualifying acknowledgement or payment can affect limitation.

Keep a diary

As you continue to deal with ICB debt collectors, you should keep careful notes about your dealings with them. Make sure you note down the dates of all their letters, as well as the times and dates of any phone calls they make. 

If you can, take down the names of the people you end up speaking with. If any problems arise further down the line, you will have plenty of information at your disposal.

It makes it a lot easier to keep accurate records if you communicate via post. You can request that ICB do the same.

Keeping clear records can help resolve a dispute, but does not guarantee the firm must accept your account of events.

Proving the debt

If you’re still uncertain as to whether you do actually owe the amount they say you owe, you can send them a ‘Prove the Debt’ request in a letter.

Debt verification is a crucial step that, in my experience, too many people skip.

The required evidence depends on the policy, finance agreement and dispute. A missing original document does not automatically mean the debt is cancelled.

Follow our ‘prove it’ guide with letter templates and get them to prove that you owe the money.

Chasing old debts

Many ordinary unsecured debts may become statute-barred after six years in England and Wales, or prescribed after five years in Scotland. The start date, debt type, payments, legally relevant acknowledgments and any court claim all matter. A creditor’s letter alone does not restart the period. Ask a debt adviser to check the facts before paying or admitting liability, and respond to any court papers on time.

In England and Wales, limitation can provide a court defence; Scottish prescription can extinguish an obligation. Do not ignore proceedings if they arrive.

Keep in mind that not all debts become statute-barred!

Judgments and tax debts have separate rules. A CCJ does not expire with its credit-file entry, but later enforcement may require permission or face other restrictions.

What if I Can’t Afford to Pay?

Ask for a sustainable arrangement if the balance is valid but unaffordable. Appropriate forbearance may be required for regulated-credit activity, but no particular repayment offer is automatically guaranteed.

As there are several different debt solutions available in the UK, I recommend speaking to a debt charity for some free advice. Their advisors will be able to walk you through your options in detail and find the best solution for you.

Debt Management Plan (DMP)

A DMP is an informal debt solution that lets you pay off your debts via a single monthly payment.

Because it is informal, it is not legally binding so you are not tied into a DMP for a minimum number of payments.

Individual Voluntary Arrangement (IVA)

An IVA is a formal insolvency arrangement managed by an insolvency practitioner. Your proposal sets out payments, any assets involved and fees. Once approved, it binds the creditors and debts covered by it and restricts recovery action; it is not a blanket ban on necessary correspondence.

Many IVAs involve payments for five or six years, but the agreed term varies. Qualifying unpaid debt is normally released only on successful completion. An IVA affects your credit record, may involve assets or home equity, and can fail if its terms are not met.

IVA suitability depends on your debts, affordable contributions or available assets, fees and creditor approval. There is no universal rule that you must owe several thousand pounds to more than one creditor. Get independent debt advice and compare other options before agreeing to an IVA.

Trust Deed

IVAs are not available in Scotland. A Scottish money adviser can compare a protected trust deed, the Debt Arrangement Scheme, sequestration and informal arrangements; a trust deed is not compulsory.

A protected trust deed is a Scottish insolvency arrangement, usually lasting at least four years of contributions. It can discharge qualifying unpaid debt on successful completion, but fees apply and your home or other assets may be at risk. Covered creditors cannot pursue payment outside it, but can still send required documents.

Debt Relief Order (DRO)

In England and Wales, a DRO may suit an eligible non-homeowner with low surplus income, limited assets and qualifying debts within the £50,000 limit. Detailed income, asset, vehicle and residence rules apply. An approved debt adviser checks eligibility and submits the application to the Insolvency Service.

During the usual 12-month DRO period, recovery of listed qualifying debts is restricted and you generally do not pay those debts. Continue paying essential ongoing bills and excluded debts. A DRO does not prohibit every required creditor notice.

A DRO normally lasts 12 months. If it remains in force, the qualifying debts listed in it are normally discharged at the end. You must report relevant changes and continue paying ongoing bills and excluded debts, such as court fines and student loans.

Bankruptcy

If you have debts but no realistic possibility of ever paying them off, you may need to declare bankruptcy.

Bankruptcy has an unfair stigma attached to it as it may be your only way of getting a financial fresh start. That said, it is a serious financial situation that should not be taken lightly.

Sequestration

Sequestration is the Scottish bankruptcy process. Scotland’s Minimal Asset Process is a route into bankruptcy for people who meet its conditions. Its application fee has been removed. Ask an approved Scottish money adviser to compare it with the alternatives and explain the effects on assets, credit and income.

Know Your Rights

Debt collectors must abide by certain rules when visiting your home/contacting you. In order to have an edge over the situation and not be taken advantage of, it’s important that you know your rights and those of the debt collectors getting in touch with you.

Please check out the following table to learn more.

Debt collectors may	Limits and protections
Contact you to seek payment	For regulated consumer credit, contact must be at reasonable times and respect reasonable requests about when, where and how you are contacted.
Ask to discuss the debt at a home visit	A collector has no bailiff powers, cannot force entry or take goods, and should leave when asked.
Explain possible court action	They must not mislead you about their powers or threaten action they cannot lawfully take.
Discuss an affordable repayment or settlement	Get agreed terms in writing and obtain free advice if you dispute the debt or cannot afford payments.
A creditor may seek a separate court enforcement order	A CCJ alone does not give a collector access to your bank account. A third-party debt order requires a separate court process.
A creditor may assign a debt	Check who owns it and who is authorised to collect; do not disclose payment details to an unverified caller.
Make proportionate follow-up contact	Harassment is prohibited. Requests about contact must be considered; necessary legal notices may still be sent.

If you suspect the debt collectors contacting you are not abiding by the rules, you can always complain.

How do I Complain About Insurance Collections Bureau?

If you think that ICB has been unreasonable or behaved inappropriately, you can make a complaint. You can also make a complaint if you feel that they have broken any of the Financial Conduct Authority’s (FCA) guidelines.

Fortunately, filing a complaint against ICB is quite straightforward!

Make your first complaint to ICB directly so that they have the chance to sort out the issue themselves. If you feel that they have not taken your complaint seriously enough or have not addressed your issue properly, you can escalate matters.

Complain to the business first. If the activity falls within the Financial Ombudsman Service’s remit, you can normally escalate after a final response or eight weeks without one, usually within six months of the final response. The Ombudsman can require redress, such as compensation or correcting records; it does not fine firms or remove their authorisation.

ICB Contact Information

Phone:	01707 566 053
Online form:	https://www.insurancecollectionsbureau.co.uk/contact-us/
Email:	[email protected]
Address:	Insurance Collections Bureau Weltech House, Ridgeway, Welwyn Garden City, Herts, AL7 2AA

We answer some of the more commonly asked questions about ICB debt collectors, and debt collection agencies in general.

References

1. Insurance Collections Bureau: its collection role
2. Insurance Collections Bureau: official contact details